Children In Need chiefs 'spend £2m on admin'

CHILDREN In Need spends é2m a year on administration costs, financial records have revealed. The figure emerged as fundraisers prepare for tonight's event and an independent watchdog claimed giving to the charity was a "bad idea", as there were more productive ways of supporting good causes.

CHILDREN In Need spends é2m a year on administration costs, financial records have revealed.

The figure emerged as fundraisers prepare for tonight's event and an independent watchdog claimed giving to the charity was a "bad idea", as there were more productive ways of supporting good causes.

The report by Intelligent Giving said: "Loathe as we are to knock the stuffing out of the one-eyed teddy, the fact is that supporting Children In Need is a lazy and inefficient way of giving. Giving your cash to a grant-giving charity like Children In Need is, 90 per cent of the time, a bad idea."

Official records supplied to the Charity Commission by Children in Need bosses showed that a total of é36,053,000 was spent last year on "charitable activities". But é1,837,000 of this went towards "management and administration" and a further é550,000 is listed under "generating funds".

That is later explained as the cost of events featured in the seven-hour live television show. An explanatory note adds: "The cost of the activity is not towards the actual television programme - it is the cost of staff and materials to support our fundraisers."

The document, signed by Children In Need's chief operating officer David Ramsden, says that while é34.038m was raised by direct donations, a further é2.978m came from "investment income". The charity has some é18m in reserves.

'Force for good'

Intelligent Giving, set up by magazine publisher Peter Heywood to advise would-be donors how to effectively use their cash, admitted Children In Need was a "significant force for good" despite the warnings about its administration costs.

It was first broadcast by the BBC as a live telethon in 1980. Tonight's show will include Girls Aloud and Coronation Street's Richard Fleeshman.

The BBC is expected to again match the amount donated by the public on the night - although critics say that is possible only because of the interest raised on donations and reserves.

A BBC statement said: "In 2005, our appeal raised é33m from public donations and we have since awarded é33m to projects across the UK.

"We are very open about how this is achieved. The donated funds generate interest in the bank which means that all our administration costs are able to be met by investment income and not donations."